Financial Planning requires high level of competency and knowledge. To provide good advice, it is important that the financial planner is familiar in the area he is advising. Thus, I focus on certain ‘target groups’ categorized into the following: Residency Age Language Scope of work and profile of client Length of work Networth of client Cash flow of client Minimum investment … [Read more...]
What is the CFA Charterholder designation?
The CFA® charterholder designation is awarded by CFA Institute. CFA Institute is a global, not-for-profit organization comprising the world’s largest association of investment professionals. With over 100,000 members, and regional societies around the world, the Institute is dedicated to developing and promoting the highest educational, ethical, and professional standards in the investment … [Read more...]
What is a Retainer fee?
A retainer fee is an agreed fee paid by the client, to secure the services of a consultant. While the Initial Planning fee is meant to remunerate the adviser for specific and well defined work, the retainer fee is meant to remunerate the adviser for time spent for on-going services. The following are examples the services provided in the Retainer Service: Budgeting and credit management (e.g. … [Read more...]
What is Special Needs Planning?
All parents with children with special needs (or PSNs – Persons With Special Needs) are burdened by two things: The huge financial resources to support their children on a long-term basis. Assuming the PSN require $5000 per month in living expenses, medical, special school, special education and cost of care giver – the total amount required for a 1 year old child is 5000 x 12 x 82 = $4.92 … [Read more...]
How can I ensure that the Trustee of a trust does its “job”?
As Trustee holds significant responsibility, it is important that the settlor is satisfied that Trustee is able to fulfill its responsibilities. Some important considerations are: Is the Trustee a regulated entity by the Monetary Authority of Singapore or is the Trustee located in some offshore island with unfamiliar laws? Using a locally regulated Trustee is very useful as the settlor and … [Read more...]
Is testamentary trust really necessary?
A testamentary trust is an express trust that is written into a Will but will only be setup after the testator dies and when the Grant of Probate is granted. If the estate is insolvent after all debts are paid, the testamentary trust cannot be setup. Majority of the Wills written are already creating implicit trust. For example, if you give $X to your children who are still minors, this money … [Read more...]
Who can be a Trustee and who regulates them?
A Trustee can be an individual or a trust company. It is better not to entrust your assets to individual trustees because such an individual can die (and you could end up having your assets commingled with his or her) or embezzle the money to the detriment of the beneficiaries. It is better to look for a trust company regulated by Monetary Authority of Singapore. In Singapore, all trust … [Read more...]
Is setting up a trust only for the rich? I get the impression it is for the high networth
Of course not! But it is true that it is very difficult to find a trust company willing to take in small business although I know of one that is willing to take in a trust size as small as $1000! However, I will only be able to introduce the trust company to clients who did they financial planning with me as I have no wish to make any recommendations unless I have done a comprehensive due … [Read more...]
What is the difference between a simple Will and a comprehensive Will?
The main difference between a simple and a comprehensive Will is that the latter contains a testamentary trust. The following is an outline example of a comprehensive Will for a married person with children who are still minors. A simple Will will not have the items indicated by the asterix *. Please note that this is only for illustration – it is NOT a recommendation. For more information about … [Read more...]
What is the process of a person who dies testate / intestate?
A person who dies without a Will is known as dying intestate. The Personal Representative will have to apply to obtain the Letters of Administration (LA). Note that for a person who dies with a Will but with no Executor (e.g. dies, resign, disabled, missing), the process is the same for obtaining the LA but it is called Letters of Administration with Will Annexed. The process of LA as … [Read more...]
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